Council budget

An introduction to the council's budget and how we spend money.

How we set our budget

Each year the council must, by law, set a balanced budget.

That means the amount we expect to spend is no more than the amount of money we expect to receive.

Every year since 2010 setting a balanced budget has been harder and harder as the amount of money we receive has reduced and inflation has increased costs.


A line graph showing reductions in funding, cost pressures and cumulative inflation year on year from 2010 to 2027. Chart scales are given in both millions of pounds and percentage. To 2026 to 2027 the council has received a reduction in funding of £50 million. Cost pressures over the same timeframe means spending has increased £373 million. The gap is £423 million.

Making savings

To balance the budget we have had to make hundreds of millions of pounds of savings. And in the coming year, and the years beyond, we will need to find more savings. We must do this while maintaining the essential services that communities rely on.

So far we have needed to make savings of £369 million - that's equivalent to more than £2,646 per household in Newcastle.

In the financial year 2024 to 2025 our services need to save £14.4 million.

We expect to have to make further savings of £23.8 million in 2025 to 2026 and £21.6 million in 2026 to 2027.

That is a total of £59.8 million over the next three years.

Some of these budget reductions have had an impact on services, however, many have been achieved by:

  • finding alternative and more cost-effective ways to deliver the same level of service
  • improving efficiency
  • generating more income

Budget consultation

Each year, to help us with the tough decisions we have to make to balance the books, we consult residents about proposed changes and where you think we should make savings.

Our consultation on the 2024 to 2025 budget has now ended.

Following consultation we collect and analyse all of the feedback received, alongside any other announcements that impact on our finances.

Setting the budget

Following the consultation a revised budget is discussed by our Cabinet, then goes to be debated at a meeting of the full City Council. If agreed the budget is then set for the coming year.

The budget for April 2024 to March 2025 was agreed by full council on March 6 2024.